Gold treads water ahead of more Fed cues

Gold prices moved little in Asian trade on Thursday, reeling from steep losses this week as markets awaited more cues on the U.S. economy and monetary policy, while copper prices bounced back from a five-month low on some improving sentiment.

The yellow metal tumbled below the $2,000 an ounce level for the first time in two weeks as hawkish signals from the Federal Reserve and easing fears of a U.S. debt default saw traders pivot out of the safe haven.

Focus now remains on more upcoming addresses by Fed officials over the next two days, most importantly Chair Jerome Powell on Friday. A slew of officials signalled that U.S. inflation still remained too high, which could attract more policy tightening measures by the central bank – pointing to more pressure on gold.

Spot gold was flat at $1.982.18 an ounce, while gold futures steadied at $1,985.15 an ounce by 20:17 ET (00:17 GMT). Both instruments were trading down 1.4% and 1.8%, respectively, for the week.

The yellow metal saw a measure of profit taking this week after racing to a record high earlier this month.

Meanwhile, copper prices steadied on Thursday after bouncing back sharply from a five-month low in the prior session. The red metal was hit with a renewed wave of selling on weaker-than-expected economic data from China, as well as increased fears of a U.S. recession this year.

Important Note: The information found on Ausprime platform is intended only to be informative, is not advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not include any specific investment objectives, financial situation and needs of any specific person who may receive it. The past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statement